16/7/2009 Power Factor Correction

Power Factor Correction

Depending upon the rate structure of your electric utility, you may be able to save a substantial
amount of money on your electric bill. Pay-back period for an equipment purchase including
installation cost may be less than six months to a year. Utility rate structures that account for reactive
power consumption, by either a KVA or var demand usage, or a power factor penalty are the ones that
can provide this pay-back. Other ancillary benefits to be gained by correcting power factor are, lower
energy losses, better voltage regulation and released system capacity. This page explains the
fundamentals of power factor and how NEPSI's shunt capacitor banks can benefit you.

All electric equipment requires "vars" - a term used by electric power engineers to describe the reactive
or magnetizing power required by the inductive characteristics of electrical equipment. These inductive
characteristics are more pronounced in motors and transformers, and therefore, can be quite significant
in industrial facilities. The flow of vars, or reactive power, through a watt-hour meter will not effect the
meter reading, but the flow of vars through the power system will result in energy losses on both the
utility and the industrial facility. Some utilities charge for these vars in the form of a penalty, or KVA
demand charge, to justify the cost for lost energy and the additional conductor and transformer
capacity required to carry the vars. In addition to energy losses, var flow can also cause excessive
voltage drop, which may have to be corrected by either the application of shunt capacitors, or other
more expensive equipment, such as load-tap changing transformers, synchronous motors, and
synchronous condensers.

Figure 1 - Power Factor Triangle

The power triangle shown in figure 1, is the simplest way to understand the effects of reactive power.
The figure illustrates the relationship of active (real) and reactive (imaginary or magnetizing) power.
The active power (represented by the horizontal leg) is the actual power, or watts that produces real
work. This component, is the energy transfer component, which represents fuel burned at the power
plant. The reactive power, or magnetizing power, (represented by the vertical leg of the upper or lower
triangle) is the power required to produce the magnetic fields to enable the real work to be done.
Without magnetizing power, transformers, conductors, motors, and even resistors and capacitors
would not be able to operate. Reactive power is normally supplied by generators, capacitors and
synchronous motors. The longest leg of the triangle (on the upper or lower triangle), labeled total
power, represents the vector sum of the reactive power and real power components. Mathematically,
this is equal to:

Electric power engineers often call total power, kVA, MVA, apparent power, or complex power. Some
utilities measure this total power, (usually averaged over a 15 minute load period) and charge a monthly
fee or tariff for the highest fifteen minute average load reading in the month. This tariff is usually added
to the energy charge or kilowatt-hour charge. This type of billing is often called kva demand billing and
can be quite costly to an industrial facility. NEPSI's shunt capacitors can save your company money by
decreasing your reactive power component supplied by the utility to near zero vars.

The power triangle and the equation above show, that as the reactive power component is decreased
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by adding shunt capacitors, the total power will also decrease. This is shown by the decreased length
of the dashed lines in the power triangle as the reactive power component approaches zero. Therefore,
adding capacitors, which will supply reactive power locally, can reduce your total power and monthly
kva demand charge.

The angle "phi" in the power triangle is called the power factor angle and is mathematically equal to:

The ratio of the real power to the total power in the equation above (or the cos of phi) is called power
factor. As the angle gets larger (caused by increasing reactive power) the power factor gets smaller. In
fact, the power factor can vary from 0 to 1, and can be either inductive (lagging) or capacitive (leading).
Capacitive loads are drawn down, and inductive loads are drawn up on the power triangle. Most
industrials normally operate on the upper triangle (inductive or lagging triangle). As an industrial adds
capacitors, the length of reactive (inductive) power leg is shortened by the number of capacitive kvar
that were added. If the number of capacitive kvar added exceeds the industrials inductive kvar load,
operation occurs on the lower triangle. This is commonly referred to as over compensation.

Utilities charge for reactive power in a countless number of ways. Some utilities charge for kvar
demand, while others charge a strait fee for a power factor less than their target. To fully understand
the benefits of NEPSI's shunt capacitor and harmonic filters, you must acquire your electric billing rate
structure. This rate structure will describe how cost for poor power factor are added to your monthly
bills. If you need assistance in calculating your pay-back periods, feel free to contact our nearest
factory trained sales representatives or just call Northeast Power Systems, Inc.

Table 1, which contains kilowatt multipliers, can be used to calculate the amount of kvar required to
raise your "original power factor" to your "desired power factor". For example, a facility has a peak
kilowatt demand of 5000 kW with a power factor of 0.80. The facilities engineer wants to raise its power
factor from 0.80 to 0.95. The kW multiplier obtained from table 1 is 0.421. Multiplying this value times
the facilities kilowatt demand yields 2105 kvar (0.421 X 5000 = 2105). Therefore, a 2105 kvar capacitor
bank would raise the facility's power factor from 0.80 to 0.95.

Table - 1 Kilowatt Multipliers

In addition to the above table, the following web page can be used to calculate the required amount of
vars based upon an initial power, desired power factor, and kw demand (Calculation of Required kvar to
Raise Power Factor).

Other equations and calculation methods for power factor correction exists in the formula section of
this website.

Northeast Power Systems, Inc.

66 Carey Road
Queensbury, New York 12804
Phone: 518-792-4776
Fax: 518-792-5767

E-mail: sales@nepsi.com
Website : www.nepsi.com

Copyright 1999 - 2009 Northeast Power Systems, Inc.

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